Insurance Premium

An insurance premium is the amount you pay regularly—often monthly or annually—to an insurance company in exchange for coverage. Think of it as a fee for transferring some of your financial risk to the insurer. If a covered event occurs, such as an accident or health issue, the insurer helps pay your expenses as outlined in your policy. Premiums are determined based on factors like your risk level, coverage amount, and policy terms. Paying premiums ensures you maintain your coverage, providing financial protection and peace of mind against unexpected costs.